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How to Build Customer Loyalty

Learn how to build customer loyalty and maximize your revenue. Building customer loyalty is not an easy task. To achieve success, you have approach it tactfully by following our proven methods below.

Every business need prospects. Customers is crucial when starting a new business, but the ability to retain old customers is what will determine the long-term success of any brand. As such, you must learn how to build customer loyalty. In this article, I will outline proven ways that can help you build customer loyalty.

How to Build Customer Loyalty
Build Customer base

What is Customer Loyalty?

Customer loyalty simply means the willingness of your customers to continue patronizing your products and services instead of your competitors. As long as your customers have a positive experience with you, there’s a high chance that they will continue to patronize you so you need to know how to maximize your customer’s satisfaction and build trust.

Importance of Having Loyal Customers

It is much easier to retain customers than to try and bring new ones, which is the reason why building customer loyalty is important for your business. If customers enjoy their experience with you, then they’ll keep coming for more. There are many benefits of building a loyal customer base, below are some of them:

Increase revenue: Loyal customers provide repeat business and are more likely to spend more than new customers. New customers are always cautious when spending money, but loyal customers trust you and your brand and are willing to take the risk of splurging on your products and services. They are also more likely to try your new products or services and provide you with valuable feedback that will help you improve the quality of your products or services.

Attract more new customers: Loyal customers who love and trust your products or services, are very likely to recommend your business and bring in new customers for you.

Saves cost: Keeping existing customers is much cheaper than trying to acquire new ones. You can save on marketing and advertising costs by building loyalty in each of your customers.

Competitive advantage: A strong base of customers keeps you way ahead of your competitors. Your business can easily withstand strong competition and economic fluctuations if you have a strong customer base to back you up.

Read Also: How to Create Brand Awareness in a New Market

Ways to Measure Customer Loyalty

You know how important customer loyalty is but how do you know if your customers are loyal or not? Customer loyalty is not as simple as having repeat customers, there are many more factors to be considered. Here are some ways to measure customer levels:


Did your customer buy from you again because they loved your products or services or because they couldn’t find anything better and had to settle? The intent behind each repeat purchase tells you whether you are doing well or not. For instance, if the reason behind the purchase of your customer is the former it means that customers are satisfied and loyal, if it is the latter it means you need to dig in further. Find out why the customer was dissatisfied.


A satisfied customer is a customer that will keep coming back. Businesses aims to make sure that its customers are satisfied, but how do you know if your customers are satisfied or not? Gauging customer satisfaction can be done in various ways including on-page star ratings, reviews, surveys and interviews depending on the detail of feedback you want.

The star rating is simple and will tell you how well your customer was satisfied. Reviews will give you some details on what the customer liked and what they did not like. Surveys will allow you to ask specific questions on subjects you are interested in. And interviews will allow you to have a more in-depth discussion of what your customers liked and did not like. The type of method you use to gauge customer satisfaction will depend on the willingness of your customers. Almost every customer can spare the time to drop a rating or review, but hardly any customer will be willing to undergo an interview with you.

You should try to encourage your customers to convey their satisfaction as much as you can. For example, you can provide some incentives to your customers when they complete surveys or interviews in the form of payment or discounts. However, this may come at an extra cost to you so you need to be able to determine if the cost will be worth the long-term gain or not.

Customer repeat purchase rate

This is the percentage of your customers that come back and buy your products again. The higher the percentage the better because it means the majority of your customers make a repeat purchase and this could reflect customer loyalty.

How to Build Customer Loyalty

Understand your target audience

Building customer loyalty requires that understand your target audience. This includes understanding your customers’ needs and what motivates them. This will give you an idea of the kind of products they will buy and how to market it to them.

To understand your customers:

Conduct market research– This will help you figure out who your target audience should be, how strong your competitors are and whether your business will be successful or not.

Identify customer needs and preferences – Take the time to gain a deep understanding of their wants and needs. Then you can tailor your products, services and marketing strategies to best suit them.

Provide the best customer experience

Sometimes, the care you offer to your customers while conducting business with them matters more than the actual product or service. You may have the best quality product around but if your customer does not have a good experience with you, they may not patronize you again. Giving your customers the best experience will help you build loyalty with them.

Here are some ways you can provide your customers such better experiences:

Provide excellent customer service – You need to be able to answer customers’ queries and issues promptly to build their trust. Train your employees to be communicators who are polite, knowledgeable and responsive.

Personalize interactions – Each customer should be seen as a distinct person and each interaction with them should be tailored based on their history and purchase history. Showing your customer that you value them as an individual can be in the form of addressing them by their names or remembering what they liked and didn’t like about previous purchases. You should use customer relationship management (CRM) systems to manage customer interactions and keep track of relevant data.

Exceed customer expectations – Try to anticipate their needs and meet them in ways that will create a special experience for your customers. This could be in the form of unexpected rewards, special promotions, or personalized offers. By meeting and exceeding the expectations of your customers, you can build a loyal customer base that loves and appreciates your business.

Build trust and credibility

You can only build a local customer base with trust and credibility. Your customers should be able to trust you to always put their interests first and deliver the best quality products or services. And this trust can only be built by consistently meeting and exceeding their expectations.

Here are some ways to build trust and credibility with your customers:

Maintain transparency in business practices – One way to build trust is by being transparent about all of your business practices. Be very open about your products, services, pricing, and policies. When recommending products or services to customers, do not try to recommend more expensive products or services so you can make more gains, but try to meet the needs of your customers as best as you can. Be sure to communicate any changes that may affect your customers, and be transparent in your practices.

Deliver high-quality products or services – Ensuring that your products or services meet the quality standards expected by your customers is key to building trust and loyalty.

Implement fair pricing strategies – Always ensure that your prices are reasonable and fair. Do not deceive customers into buying low-quality products for a high price to make more money, because it will hurt your business in the long term. Evaluate the quality of your products and ascertain the price based on that, and clearly communicate the value your customers will receive for their money. A good marketing strategy is implementing flexible pricing options like offering discounts when they purchase in bulk or loyalty members programs.

Foster emotional connections with customers – A way to build trust with your customers is by targeting and appealing to their feelings. Try to create a touching story for your brand and products or services that will impact your customers emotionally. You can do this through storytelling, relatable content, and engaging experiences. Try to always make your customers feel cherished and respected.

Establish a strong brand identity

Your brand identity is extremely important in building a local customer base because it is what your customers associate your business with. There are several ways to build a strong brand identity, and some of them include:

Develop a compelling brand story – You need to come up with a brand story that will resonate with your customers. Your brand story should communicate your vision, mission, and values in a way that will pull at the heartstrings of your target audience. Share the story behind your brand and your journey including all the hardships you have to face and how you overcame them.

Be consistent across all touch-points – Consistency is key in helping customers easily recognize your brand. Be consistent in all brand elements that you use, such as logos, colours, fonts, and tone of voice.

Implement loyalty programs

Loyalty programs will show your customers that you are aware of them and value them a lot. This will help encourage loyalty and continued patronage from your customers. Make sure that the rewards are meaningful to them and tailored to their preferences.

Reward loyal customers – Always reward your loyal customers to encourage continued patronage. Offer incentives, such as discounts, freebies, exclusive access, or tiered membership levels. This will encourage them to keep choosing your brand.

Offer exclusive benefits and discounts – Make sure your loyal customers know that they are valued by giving them some special treatment. Offer them early access to new products, special promotions, personalized offers, or free shipping. Make sure the rewards are meaningful and aligned with your customer’s preferences.

Gamify the customer experience – Making your loyalty program fun and interactive will increase the engagement of your customers. You can gamify their experience by incorporating elements such as points, badges, challenges, and leaderboards into your loyalty program. Make it in such a way that customers unlock achievements or reach milestones for additional rewards.

Encourage customer engagement and communication

Communication is key to fostering a relationship with your customers that could lead to loyalty. Communicating frequently with your customers will show that you care and keep you on their minds constantly.

Here are some ways to improve your communication with your customers:

Determine the best communication channels – There are various ways you can use to communicate with your customers and each serves its purpose. The different means of communicating with your customers include email, social media, phone calls, etc. Depending on your target audience and product or service, you will need to utilize specific communication methods. For a business selling clothing articles and targeting young people, social media is the obvious choice. But,  for a blog sharing health tips with subscribers, email will be a better option.

Utilize social media platforms – Social Media is very popular and is something virtually everybody uses so make sure to utilize it well. Open social media accounts on various platforms, and use them to share information about your business and communicate with your customers regularly. This way, your customers know what’s going on with your business and you can build a better relationship with them.

Encourage customer feedback and reviews – Actively encourage your customers to write reviews and give feedback on their experience with you. This will go a long way to show that you care about them and their opinions. Try to provide multiple channels that your customers can use to share their feedback including surveys, questionnaires, online reviews and interviews.

Engage with your customers – Foster communication between you and your customers by engaging in two-way communication with them. Reply to their comments, queries, and concerns promptly. Encourage dialogue between you and your customers and always ask for their suggestions. Use the feedback you get from them to better your business and make sure they are aware that their suggestions are helping to shape your business.

Provide Added value

Your products and services should not be the only thing your customers gain from you. You should provide some added value to their lives by constantly sharing educating content in the form of blog posts, videos or social media content that is related to your business and relevant to them.

For instance, if you sell clothing articles or accessories, you could try to suggest some fashion tips; or if you are a travel agent you could post content sharing information about different places your customers can visit. You can take it a step further by developing educational resources that could help your customers make better and more informed decisions, which may be in the form of guides, tutorials, how-to videos, or webinars.


The importance of loyal customers to a business cannot be overemphasized. Having loyal customers will help build a business that will stand the test of time. Customers will help keep your business afloat but loyal customers will help you soar higher. This is why it is so important to have loyal customers to back up your business. To build customer loyalty requires that you get to know your customers.  Give them the best experiences and build trust by being transparent about your practices.  Offer them the best value for their money, engaging with them and implementing their suggestions. Finally, reward them for their loyalty and provide them with added value.

Building customer loyalty can be hard, but by following the above proven ways you’ll be successful.

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